Abstract

This literature review, carried out during the inception phase of the
project 'Urban infrastructure in Sub-Saharan Africa – harnessing land
values, housing and transport', deals with the nature and dynamics of
urban property markets in Sub-Saharan Africa and the way in which these
can provide a basis for funding urban infrastructure using various land
value capture mechanisms.

Following the introduction, Section 2 defines the scope of this
literature review and the methodology applied in doing the work.

Section 3 sets the context associated with urban living in Sub-Saharan
Africa, the trends relating to urbanisation, the nature of the property
market and the current status with infrastructure provision and the
overall arrangements for financing infrastructure.

Sections 4 and 5 deal with specific land value capture mechanisms as
these are applied internationally, including with experience with these
mechanisms in specific countries outside Sub-Saharan Africa.

Section 6 covers a review of international policy on property markets
and infrastructure finance. The applicability of land value capture as a
means of financing infrastructure is addressed.

Based on the literature relating to international experience and policy
proposals, Section 7 summarises ‘lessons’ for Sub-Saharan African
countries with regard to application of land value capture mechanisms
for financing infrastructure. These lessons cover the merits of land
value capture as a finance mechanism as well as the limitations of this
approach.

In Section 8 the potential application of land value capture in
Sub-Saharan African countries is reviewed. This is covered firstly
looking at the extent to which the conditions are favourable for such
and approach and, secondly, by summarising experience in the few places
where land value capture is actually being applied.

Finally, interim recommendations on what needs to happen to expand the
application of land value capture mechanisms in Sub-Saharan Africa are
made in Section 9. Issues to be addressed in the Implementation Phase of
the project within which this literature review fits are included.